ESTA vs. U.S. Visa: What Foreign Nationals Must Know Before Applying for a DSCR Loan
ESTA vs. U.S. Visa: What Foreign Nationals Must Know Before Applying for a DSCR Loan
Loan Case Study: #1367 – Elad & Guy, Indiana Cash-Out Refinance
At Nadlan Capital Group, we specialize in matching foreign nationals with the right DSCR lenders. But as this case proves, some lenders still misunderstand or reject common forms of travel authorization — especially ESTA.
Elad & Guy, two experienced Israeli investors, encountered a major hurdle with lender Janina (#2494), who refused to accept their ESTA travel authorization as a valid visa or ID.
🔍 What Is ESTA?
The Electronic System for Travel Authorization (ESTA) is a visa waiver used by Israeli and other eligible passport holders to enter the U.S. for up to 90 days. It’s fast and digital — but it’s not an actual visa.
✅ Useful for travel
❌ Not considered sufficient ID by some lenders
🧾 DSCR Lender Document Requirements (Typical)
| Document | Required? |
|---|---|
| Passport | ✅ Mandatory |
| U.S. Visa (B1/B2, etc.) | ✅ Often required |
| State-issued ID | ⚠️ Required by some lenders |
| Proof of U.S. Address | ✅ Yes (Utility bill, lease, etc.) |
| ITIN or SSN | ✅ Yes |
| Operating Agreement (for LLC) | ✅ Yes |
📉 What Went Wrong in Loan 1367?
The borrower provided a valid passport and an ESTA document — a standard visa waiver. But the lender’s team responded:
“It’s not a visa itself, but a screening process… We require a U.S. Visa or State-issued ID.”
Despite our clarification that ESTA is the accepted form of entry for Israelis today, this specific lender refused to proceed. The borrowers expressed frustration:
“We are from Israel… you guys knew that”
“How can I get a U.S. ID?”
“What’s the point in filling out all our info if it’s not taken seriously?”
🧠 Why This Matters
Many DSCR lenders have outdated policies or rely on underwriters unfamiliar with current travel protocols. ESTA is recognized by the U.S. government, but not all lenders accept it — and some require a visa or even a driver’s license!
💡 Tips for Foreign National Borrowers
- ✅ If possible, apply for a U.S. Visa (B1/B2) — not just ESTA
- 📬 Have a U.S. mailing address + utility bill or lease agreement
- 🧾 Ensure LLC docs clearly show ownership
- 🛂 Renew your ESTA if it’s near expiration
- 🔍 Work with brokers (like Nadlan Capital) who match you with lenders that accept your documents
📌 Outcome of the Deal
Due to the lender’s refusal to accept ESTA, we had to restructure the deal. Multiple properties were reassigned to a different lender with more flexible underwriting. Still, processing time and costs increased, and frustration rose on both sides.
✅ Final status: Approved by Lender #2494, but only after a long process and property shuffling.
🎯 Conclusion
This case is a reminder: If you’re a foreign investor, it’s not just about your documents — it’s about whether the lender accepts them.
At Nadlan Capital, we guide borrowers to the right fit: no document surprises, no last-minute blocks. Let us run a custom mortgage auction and find a lender who says YES.
🔗 Read the full case:
Case Study: Loan 1367 – Elad & Guy
🏦 Start your auction now:
Nadlan Capital Group – DSCR Loans for Foreign Nationals
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